That’s what Hermanwan Kartajay – the Chairman of International Marketing Association - shared in his recent visit to Vietnam.
High investment high return
An owner of a food distribution company in Pham Ngu Lao Street (District 1, HCMC) said: “In mid-2006, in face of the global integration and Vietnam’s preparation to join the WTO, I decided to hire a Marketing Director and pay him 30 million dong per month. The Board of Management rejected my idea, saying that this compensation was too high, which might cause disagreement and envy inside the organization. However, I persisted with my idea…”
My decision paid off as this person has proven that I made the right decision. He successfully built up a network of 600 retailers throughout the country compared to only 50 established in the previous three years. All my Marketing Director’s decisions were based on solid market research statistics and experience of well-known multi-national corporations… Since I had this talent, my company’s turnover has increased by 10 times.”
It’s a matter of fact that today almost all companies try to prevent the “brain-drain disease” by creating a friendly working environment, offering training opportunities and promotion… However, it’s always true that salary is one of decisive factors to help companies retain their talent.
Mr. Luong Van Vinh, Director of My Hao Company said: “Besides monthly salary, our regional sales supervisors also receive all expenses for their living far away from their family. I realize that high salary is the most important factor making them most committed to the company.”
How to retain talent the most effectively?
Besides benefits mentioned in the labor contract, employers tend to save “special bonus” for employees working for the company for a long time. LH Commercial Service Company has a policy to offer 20-year loans (without interest) to its 15-year-experienced employees for buying houses. It even offers an apartment to those working for the company for more than 20 years.
Ms. Nguyen Thi Khanh, owner of a garment company in District 10 said “We buy a house for any workers who have worked for us for more than 12 years. In my opinion, that’s the way to show my appreciation for their contribution to our present success.”
Mr. Nguyen Huu Tri, the General Director of Kymdan Corporation said: “Enterprises should offer salary range which can support not only the workers but also their family. Thus we should build appropriate salary and benefit policy to retain and encourage experienced employees.
How is an appropriate salary and benefit policy?
Ms. Nguyen Thi Tranh, Deputy General Director of Saigon Co-op reveals that the company is formulating an effective HR policy which can retain experienced people and attract young talented candidates.
Nowadays, employers tend to keep workers by two ways: increasing the year-end bonus highly which depends on the turnover, or sharing the profit to encourage workers to be more committed to the company’s success.
